tv BOS Govt Audits and Oversight Committee 4517 SFGTV April 9, 2017 1:10pm-3:26pm PDT
and also recognize the staff. for taping our meetings and making sure that there are online. mdm. devon announcements? >> yes please make sure that you go ahead and turn down your cell phones and any electric devices. >> thank you mme. court and you'll take members of the committee that our attendance. can we please call item number one? >> we are in fiscal year 2015. submitted by the property of
district law of 1994. >> thank you, and before we began our presentation by the department of office of economic development and neighborhood partnerships, i wanted to say thank you for the model for the city. and the yearly report speaks highly to the cbd meeting. i really want to command kathy and her team in the year of 2015-2016. they removed 200, 000 pounds of trash, steve cleaning over 2,000,270 linear feet and addressing over 1400 issues of illegal dumping. providing legal guide and their successful night that i always like to attend myself. i really think that the c bd has been successful as creating a great ion neighborhood identity.
and thinking of great ideas to activate the neighborhood for workers and residents, ideas that are fun and practical. i think this is a great cbd and i'm happy to see their report. i know that chris is here to present as well as daniels. welcome. >> good morning. i oversee the committee benefit district program, we are here for the fiscal year 2015-16 yearly report. as you may know, state law known as the 1994 act and local art, governs the program in san francisco. they ensure that all cbd's are meeting their plan that staff conducts a yearly report and cpa finance reports. we provide the board with a summary carting that cbd.
at the end of fiscal year 14-15 they renewed so, for the previous duration the management plan has some differences which are articulated in the new plan which was implemented starting 2015-16. first increased to over $2 million, is a 15 year district and expire on 2030. it has 2122 partials. the staff is executive director kathy who cannot be here today to present on the achievements. instead will be daniels who is the director of neighborhood partnerships. the new service areas are cleaning and street improvements. safety and security, marketing
as well as management and operations. the staff reviewed the following four benchmarks, whether the variance of the budget or the management was within ten percentage points confirming that it raise 5.8 of its budget. confirming the budget to actuals with percentages and carry forward is identified for projects are designated. per supervisor in a march 15th session, we've included the past four years of information as previously mentioned the management plans are different. this is to show that there is a history of meeting the benchmarks, although this service areas are different within the two management plans.
the first areas management plan versus yearly budget. historically, that meant these benchmarks and they did it in 2015-2016. a second is assessment review, historically they've made it with exception of 2013-14 where they were off by a. 01%. in 215, 60 they raised their budget revenue. budget versus actual, they have historically and in fiscal year 2015-2016 measured all thresholds. they have performed well in the market and produced events such as any street plaza. increase opportunities with the stakeholders and maintain an active board of directors and several subcommittees. if there's no questions, daniels is here to present.
>> good morning supervisors and thank you for the opportunity to speak today. and thank you kim. we are very proud of her accomplishments that i'm happy to share with you today. i director of neighborhood partnerships for the committee benefit district. kathy is out sick, so i'll be speaking to you on her behalf. we want to talk to you about the week we are doing. my focus is on the 2015-16 year. we are a large district we have to hundred and 52 property owners over hundred 72 acres. the district is from market to perry and 2nd to 5th street home to museums, convention center,
educational institution, hotels, restaurants, barge-a bars and the gardens. it was approved by property owners in 2008 and since our inception's are key syrup this is-i'm key service is marketing, cleaning and supporting others who are also working to improve the neighborhood. in 2015 there were removed for more than 84 support donors. i would like to share some of those accomplishments with you today. in 2015-2016 include safety and security. our committee guides address more than 16,000 quality-of-life issues including aggressive panhandling, trespassing, sleeper camper issues and other violations. they also assisted people in need and did meet and greet and help residents find direction to local businesses.
we have a bike patrol officer who works ten hours should stay be to help the neighborhood, he responded to 1836 safety calls. were very proud of that relationship we have. in terms of cleaning, are clean team received 54,444 calls for service 50 they responded to more than 10,050 request for sidewalk cleaning and removed more than 7584 graffiti tax. address more than 1000 overflowing trash cans and 1400 instances of illegal dumping and picked up more than 200,000 pounds of trash in the neighborhood. we continue to implement our street light program to activate and improve our petition experience. we have also installed 150 custom bike racks throughout the neighborhood. we conducted a committee planning process to determine the future of the plaza and in
terms of public art, we hosted a committee event showcases sites unseen to increase public art in the neighborhood with permanent and temporary installations, exhibitions and more. we're working on a art project for we have selected and artists this, to increase your visibility the neighborhood. we have continued to promote the neighborhood through a website, events, calendar and attract people to see what the neighborhood has to offer. we also have a special night to show the cultural strings of the neighborhood. the festival of art, music and performance that features local artists. more than 10,000 went in 2015 and the attendance grows. here are some pictures. we have our committee benefit fund that we have created to award 150 and thousand and grants.
in 2018-2016, we awarded grants to events and activities such the mlk junior day celebration, outdoor mule in the coleman house. training and services for district residents, the parole lantern festival. creativity day, and the garden festival. we were within our budget percentages for fiscal year 2015-16. we are hoping to explore our hours provide enhanced safety patrol for the neighborhood. we hired a social service to build relationships with our street population and connecting them with our support. we have a planning process to address safety in our neighborhood sidewalks. we are continuing our partnerships with the millennium partner to ensure pedestrian safety is into site.
daniels. i know the cbd this great job. i just wanted to say thank you for interfacing with a lot of our constituents. you mentioned the graphic crosswalk to sign, which i'm very excited about that. we are here for an item after this one and it would be great i'm sure you're connecting, we will be building a new crosswalk which is one that many of the seniors in the housing behind that block was really fun for. it would be important that there is communication between your agency and theirs. also, thank you for all of your work the bikes locks are great, this neighborhood doesn't have a lot of places to park your bike. now i'm biking more, i appreciate that. we would love an update at some point on the plaza and how we move forward on that.
>> thank you. i think you ms. daniels. at this time, we will open up for public comment on this item. see no members of the public, public, disclose. >> i would make a motion to send this to the full board with recommendations. >> thank you. we have a motion to move this forward. with positive recommendation to the full board and we can do that without opposition. please call item number two. >> item number two is a hearing of the structure oversight of assets and city funding processes of the fine arts eczema san francisco. >> thank you. this sponsor this item is supervising. subject to public comment, i
would like to continue this to the meeting of april 28th. >> we have a motion, but it's open up to public comment. no one is going to comics so we will close it. we have a motion to consider this item on the april 28th meeting and we can do that without opposition. item number three. >> hearing for san francisco transportation agency to explain why after 27 months, they only spent 2% of the transportation approved by voters in 2014. >> thank you. the two sponsors are here at committee today. i will pass over the hearing to present bree. >> thank you.
i wanted to make a few opening comments and then we will get right into the hearing. in 2013 the city task force identify $10 billion in critical needs were transferred station. the following year, the city s of voters for approval to sell $500 billion in general obligation bonds to help meet those bonds. the bonds became the 2014 proposition eight. i voted to place in the ballot every one of our college stayed in all 11 of us signed our name with the ball lament --balance. the measure promised to invest half $1 billion in projects and improve reliability and assess ability and condition of the streets and make roads safer for pedestrians, bicyclists and motorists. based on those promises and the trust we place to make them happen, san francisco voters passed proposition a with a overwhelming vote of 72%. i concerned that they are
misusing our trust. more than two and half years later, only, only $12 million of the $500 million has been actually spent to improve our transportation infrastructure. 29 months later, they have only spent 2% of the bonds we all authorize the bonds, and the bonds that we claimed we so urgently needed. with each passing day, where paying interest on the bonds that we have sold but not using. the value of this money goes down while the cost of construction goes up. meaning they cannot though the same quality or quantity of transportation improvements that the bond money originally could have. and if they sit on bond money so long the federal government can actually impose fees, penalties
for their inaction. that is why today with my cosponsor and supervisor, i call before this government audit for them to explain. what is the reason for the delays in using these funds? what is a plan, and was a specific timeline for delivering these timelines? what is any project or feature will we be able to cut because of the delays in the corn spine in the decrease of the money? how is they and the application bond oversight committee engaged on this issue? the scheduling of bond sales is --macy obscured. but everyone in san francisco has a stake in this. it is our money. the money is paid back by rapid --revenue. we are paying the bill so we should know that we are getting
as much as possible out of it. as important, we need these transportation improvements. how many people will get hurt because of critical street safety projects and their delays? how long will they keep hearing, be patient? we depend on transportation system whether we travel by car or on foot. we all need these improvements to happen yesterday. we made promises to voters in 2014 and the city department from my perspective on this particular issue is not keeping their promises. this is unacceptable, and in fairness there is one big contributor to all of this that we also must confront.
it takes too long to get transit projects approved. we cannot continue to live a handful of people block transportation improvement that benefited thousands of people. it's not fair and is not democratic. the fact that we do it is a big reason why the public transportation has not gotten better faster and wire streets are not safer sooner. outreach is very important, don't get me wrong. at some point we have to make a decision and accept that we are not going to be able to please everyone with that decision. we can't let our transfers tatian system die --transfers tatian system die. today, we have presentations to go into detail about and have a clear understanding.
i would like based on the conversations in my office and individuals to give the presentation and try to focus on the questions that were trying to answer at hand. i know that some of the presentations are a little lengthy and so, before i turn it over to the director i want to ask if they had any comments to make as well. >> no, i don't. >> great. let's get started. director, welcome. >> thank you. thank you for giving us this opportunity and i appreciate the passion in your opening comments. i will tell you that i, and we
as our agency and other agencies we work with, take the responsibilities that elected leaders of the city as well as the voters and the residents and the workers in san francisco has given us to improve the transportation system in the city, to implement the transit and implement vision and the capital program that they --how we do that. and the stewardship of the bond funds and all other funds that we manage in our capital and operating budget are of the most importance. i never satisfied with the pace of the work that we are doing. i will provide a little bit of context, but i heard your point about a long presentation so i'll try to cut to the chase.
i want to provide a little context to orient the conversation. first, starting with the big picture of our capital program. three. billion program. you can see them on the revenue side including the bond. you can see how it breaks down into the core parts of the bond is supporting in terms of the state of repair of the system, transit and the projects going for to reduce the delays improve reliability. and the streets projects which are really no being guided by vision 0 as well as a central subway. in terms of our revenue bonds, which the board of supervisors gave us authorization through the voters to issue. that is been a part of how we been able to advance work by pulling forward to future revenues and as you can see, that's one of the sources that have enabled some of the improvements they are seen on the ground today to have gone
into place. getting our credit rating, we are recognized by the credit agencies as having one of the highest, one of the best financial management programs in the country that we got a higher rating than any other transit agency base and how were managing our money. in the course of the last five years we have significantly increased the amount that we're spending. these are actual dollar amounts we have doubled the amounts of expenditures that were putting into the ground in san francisco and projects that are creating benefits for san francisco every day. at the same time, we recognize there were shortfalls in the quality of our capital programs. we have been looking to our capital managers with training and tools and management oversight to support improvements in the work. that is ongoing work and we continue every day to improve these projects.
some of those projects are once you are seen in the ground, essential subway is a megaproject of more of $1 billion and this is sit back in 2009 and we're still holding to that budget. so on track to deliver by 2019. we started replacing the entire muni fleet which, bringing us from one of the oldest fleets of the nation to one of the newest. the nutrients have arrived and they will be going into services here. the buses are ready and service, outside the door here you see the van. the transportation authority is known for construction likewise other major improvements that are both safety and improvements as we know going through the heart of the city they're going to weigh. that is a little context for how we been working our capital
program. the geo bond that you reference gave us another significant tool in the tool kit. it was posed by the voters in november 2014 the first issuance was authorized by the board of supervisors or the fence came in 2015, july. that first issuance was under $70 million around $66 million of which was project funds and as of i guess, this is slightly outdated but as of february we had 22% of that first issuance spend another 18% rated be used. the first issuance covered these fonts categories so just to be clear to some of the earlier points we have not issued 500 million worth of bonds like we do with every teal bod in the city. we break it on the expected cash flow needs so in the first out
round with focus mostly on moving forward and safety as well as specific projects this is the breakdown this is a little bit of the timeline from the bond approval to some of the earlier projects that went into place up until the state and then the next couple of months. we did as part of our planning start to do planning and design work even in advance of the bonds and you authorize these funds to advance the design of some of the projects one ford and during that time, we work to integrate some of the 0 work so that we are really doing complete street work both improving transit as well as improving safety at the same time. i will get back into this issue of advancing the design is so that we may be at shovel ready
it did enable some projects to move forward quickly. the first one was the small project that had pretty clear and immediate safety and transit benefits. >> just to be clear, that wasn't necessarily a plan for the geo bond, specifically that was something that you made a decision on and use of funds for that particular purpose? >> this is one of the moving for projects for part of the bond program. >> let me just ask? what i'm trying to understand here, for example, does mta, you have an in-house and your department and in-house person who's responsible for managing the geo bond and the process around the bond?
>> yes. our capital finance manager has overall responsibility like with all the bond programs in the city, there's project manager in our agency and other agency including public works. they are managing the specific projects or portfolios of projects. we have a senior program mana r manager, projects. we have a senior project manager overseeing the safety projects same for better market street and that is all kind of folded up into our capital finance planning group that is managing all these other streams of revenue so that we are optimizing different revenue streams for the various parts of our capital program. >> in this particular case, is there someone with the understanding and expertise with in your department who knows
what it means to manage a geo bond? >> yes, absolutely. including myself. i've been sitting on the capital planning committee for nine years now and during my time at public works. that was when we got the general hospital bond on the ballot and we started the first parks, that's when we completed the work of laguna honda and branch library bonds. i have been doing a lot of geo bond related project delivery for pretty much my whole tenure with the city. a lot of lessons that we have from my time at public works are what is informing how we are managing this program. it's the same folks are managing their revenue bonds as well as some grants at the mta and optimized scene between the two sources to deliver a project the most effective way.
>> but, i think the challenge here and were trying to get at is the fact that because the time is moving fast and spending the man he is moving slow even though we have the things that we need to do. we are losing right now. >> i will explain some of this. no question that we've had challenges particularly with the projects that we had a teed up to implement with these dollars. i'll explain what some of those challenges are. again, i'm not happy with the pace either i feel like the second a voter or a fun is authorized we should be immediately put it into the ground. everything were doing is trying to shorten them. between when we are authorize the funds and when they're expended. there's no question that there has been challenges along the way and i will say that the biggest one, was an assumption
that i made at the stop at this process. we went through the process around 2007-2014 and it was brought to my board for approval around march or april 2014 and my belief at that time was based on that seven years of work that these projects were essentially close to shovel ready with the design money from prop k that were spending during 2014. i felt that by the time the bonds were issued in the summer of 2015, we would be ready to go. it turns out that my estimation of the readiness of the program was wrong. as you made some reference to, the work that we had to do at the next level of the detailed design when it came to were specifically what the bus stop
be. which specific parking changes would be necessitated by these projects and were conceptually approved as part of the tep. when it came to detail design, it took us a much more time in the community process and public process to get the buy-in and support that we needed in order to move these projects forward. there was some in the heart of district five for the fulton, we were seen the same thing throughout the city so where we had approval and my belief and mistakenly was that in 2015 would be ready to go into construction it took much more time through the committee process to get the support that we need it. that was my error and miss estimating how ready those projects were.
in hindsight, we would've organized a difference a project for the first issuance. as it is, we are now through the process to most part on this first of the projects and as i mentioned and it was shown in the timeline before, those are much more at the point where the ready to move. you will see later the spending rate will start to considerably accelerate but that was, of all the reasons why the spending is slow that is the main driver that we, i underestimated the amount of committee process that would be needed after the approval and the basic design was done in order to get the support to move these projects. that is the main thing at play here. we have changed how were doing outreach so that we, to your point, shorten the process. there are lessons learned from some of those projects that were bringing to bear. we have significantly tightened
up the coordination between the departments, public works in particular. we had early on public projects where, we're trying to do complete street projects and we have the moratorium and the direction of the board of supervisors that we fix everything at once. we don't fix one thing and commentary to begin. we have put in our resources together and coordinating a project which because of the ramp up in the city's paving program and the city's water replace some program, the saw replacement program and all of revision 0 programs there's a lot more work. at any given time there are dozen of projects that were all trying to coordinate and think up. so we've been tightened that up mohammed and i'm the director of the department have studied monthly meetings. we have added into that so there
is a lot that our coordination were doing and even internally with the mta improving how the muni impacts to the construction are being address. we are identifying bottlenecks but with all of these projects that were doing. one other challenge that we and other agencies are running into at the moment, because of the civic net amount of public and private construction debris processes once we have everything approved to get to a construction notice to proceed is often taking longer. we had twice a rebid a project because we did not get enough bettors in order to award the work. we've had other projects for we've had to kick contractors off because they were not performing. on the couch train project for example, which was funded from this first issuance they
recently also had to terminate a contract with the contractor. the contract and has been challenging as well. but we have been trying to get the improvements on the ground despite delays that we've had sooner than later. we have temporary the him humans that we can do. they bring benefits sooner to the residence and the writers are not permanent solutions but they get us some of the solution sinners. >> director, what are your internal protocols for holding project managers accountable for delivery issues? i when i had reference in an earlier slide, we put into place capital projects control system.
we now have the ability for anybody complain about their desk from a dashboard to track schedule and project of every single one of our 300 capital projects. i have a monthly meeting with capital project leadership from across the agency where we are going through the project and we are focusing on the ones that have a budget or schedule variance and we're using that forum particular to try to catch things early on in the process so that we may recover the schedule earlier. we have provided training to project managers to make sure that they have the tools to own the scope schedule and project of the programs. it's part of the employee performance evaluation process. up to me as well. but we have gotten and say much more vigorous in the past years with our managing our capital
programs. we have the tools in place taking a cue from the pbc, we have a private control unit they are the ones that are able to keep an eye on projects and flag one set early on our showing variance from the schedule that's approved in our cip. there is a number of things that we put in place to manage but it's a half million dollar program and i think were, when i first got there we didn't have all those systems in place. we have been building a foundation for the whole program regardless of the funding source. >> just to close that, the context as a president mention is that this was the first of a number of needs identified from
the task force process in 2013 and the needs are great which is why i share your impatience in terms of getting the improvements done and on the ground. this is just the first start in the process of improvements that we may need and it still leaves us with a gap. we will have a second issuance and possibly a supplemental appropriation to recommend changes. this coming to later this year that will help us advance of the next set of projects and because we've had delays in the first one, we are keyed up and ready to go on the ones that are beyond ready to go which is how we will be able to increase the spend rate. we will be able to start a dressing some the broader transit issues both locally and regionally with the next issuance. to the point of what is it look
like going forward? you can see with the steepness of the next phase of the curve here, we will be able to ramp up the expenditures very significantly in part because it got to the committee process now with many of the first phase of the projects, but also because of projects were teed up for the next issuance. some of them are for city and others don't have some the planning process issues and they're ready to go. will be back seeking your authorization and will be able to then give you an updated number of what our expenditures are. with that, i will close because i know you want to move on to others and i'm sure will be other questions. i appreciate the opportunity and i remain committed to work with you and all the agencies to get to this projects on the ground as fast as we can.
>> thank you. before we move on, i wanted to ask you i guess i want to go back to, what my biggest concern is and that is the project manager, whose managing the bonds, do you have the right capacity or beside yourself of course because you're not able to specifically focus on just the geo bonds. you have to run the entire department. i'm trying to have a better understanding of who is responsible for making sure this moves along in a timely manner as it relates to the bonds as it relates to the project managers and how all these things are connecting to efficiently work well together to deliver in a more timely manner because, we are expecting more but the results that we see now are unacceptable.
i'm a little concerned about that and how things are working in the department to address this issue more so than anything else. >> the responsibility is where the individual project manager is. every project has a manager that's responsible for the scope and budget. they are reporting through program managers that are working the program areas. the bond is being managed by our capital finance planning manager, and the ultimate accountability is with me. as i said, we put a number of tools in place not just for this bond but a whole program in terms of project control system and unit. the whole framework for project delivery within the agency and it's an inner agency framework because everything we do involves the agencies that we do.
i don't think that it's a management issue per se, i think the big air that i made in putting the package for this first issuance was mis-estimating the amount of committee process time would take in order to deliver that first round. that is really what striking down the spending. that is my accountability, it's not a lack of management i think we have the management structure that we need and the coordination that we need with the other agencies. it was miscalculation on my part i'm putting together this first issuance. bandages can be the outreach process. when you are going to move forward with these projects and we know the work that had to go and to prepare in order to do the spending. a lot of the stuff should have been lined up and adjustments could be made as a result of the feedback from the community or pushback from the committee. i don't know if that's kind of the right, i don't think you can
completely put the blame on underestimating the committee outreach process. >> i'm not completely and i think i have 3 or 4 other slides that we've had challenges. >> yes, the bid process. >> and the coordination with the other agencies. those are things we have all address. we have these projects that are teed up and ready to go. that's why the spending is now accelerating and even from the time, your remarks to now, expenditures have increased quite a bit. we have other projects that are ready. a lot of that is behind us, and you will see when we come to you were happy to come back to this committee but when we come back to this committee or the next phase we will be able to demonstrate the significant pickup and the spending and projections that we will have confidence in >> let me just say that, there
is a lot going on under m ta. a lot of great things are happening new trains are going to be in service soon, all the things you talked about with regards to the central subway. we know that and it's a huge department with a huge responsibility and lots of money and lots of different people and lots of moving parts. i'm really as you are, concerned about the value of the dollar, the timing and how we are losing value with this particular bond and it won't be what it was when we anticipated when it was passed. more importantly, just because of the critical needs. i just want us to see us do something faster with this money so it doesn't continue to
depreciate. >> yes. and i totally sure that view. i think we have a opportunity to catch up because we have the work teed up and we will continue work with our partners and apply lesson learn from this melon and other ones. >> okay, thank you. >> all right, we have eric who is with pec. thank you for being here. >> thank you committee members i eric and i are here to present to you our progress with the water system improvement prog m program. talk about our spending. >> that's the next item, right?
>> not the sewer system. >> this is related to the hearing. >> proposition eight? >> which one is a presentation? >> this one is related to the item you're talking about. >> that you have a slide presentation? >> yes. it comes with the packet. >> one we need to provide the water system improvements and then talk a little bit about project deliver and spending and finally talk about the project delivery with programs and financing. just by way of background, the
water system improvement program is aimed at one of the various, one of the key items which is reliability. we provide water not only to retool water service in san francisco, but also wholesale water. fan i sorry. we do not have it. and the way this is stabled it's really hard to figure out where it is. where is it? >> projects bending update. >> okay. --spending. thank you. okay. so the slide is a summary of the water system improvement program.
we provide water service to customers with in san francisco but also wholesale to 27 customers in senate clara. the scope is big in terms of geographic scope. one of the service-level goals of the water system program is to address reliability. we address those needs with the program of-- 87 individual projects. of different classes that includes dams, tunnels treatments, etc. the total project budget is $4.8 billion. about 330 million is 7% of the cost, relates to projects within san francisco. and the remaining 93% relates to 52 regional programs funding
with voters of 2002 approving prop a which is authorizing one point-- it'll love the board of supervisors to authorize the bonds. as of 2016, the program is 93% complete. as i mentioned, one of the key is reliability. our water system costs three major areas. this slide is a graphic depiction of the regional project related to the transmission system, the delivery backbone of our water system what ensures reliability. here are a list of the transmission programs, all are in service and to and the upgrades of the pipelines. one of the things to keep in
mind is that, while this is a large scope project in terms of construction it is complex in terms of operation. you need to do deliver water 24-7 while you have large projects in construction and there are two other maps here that i do not show but there are also important. you have all of the system being updated which is operational challenge. before i go to the funding i want to talk to the discussion that we heard. this is a map of the project delivery section the responsible party for ensuring project delivery is the assistant general manager.
we also have program directors all large program directors who are responsible for the scope schedule and the cost of the program. we also have a program control group that outside the chain of command and so's independent arm providing the events of that program scope schedule and cost. >> is that in-house? >> in-house. and that is a program management software that we been utilizing since we first put in place. it helps us keep on top of program delivery where accountable and we have several oversight bodies. we are talking about project delivery, we can really device i have this graph here. it's divided into preconstruction activity.
the preconstruction includes a planning, environmental, design. and the construction includes construction and closeout. when you look at this chart, you can see about 20% of the costs relate to preconstruction activities. about 70 to relate to construction costs. what's interesting, the schedule does not necessarily correspond to this breakdown you can often see that it may take a significant more amount of time that construction depending on the work that needs to be done. >> if you put a timeline on this, what with that date be on the left-hand side? is a 2006 a smart >> it's 2001. planning and design. >> so you start planning a year
or year and a half before the 2002 prop a? >> yes there was some planning efforts before then. that is the time. >> one was your first bond issuance. >> we utilize paper to fund the planning and development. we had a commercial paper program of several hundred million dollars that we used for the construction so the first bond, the first longtime financing was in 2006. >> in 2006, you utilize your first prop a bond money to take out your commercial paper? >> yes. and i have a carafe further in the presentation that shows the schedule of the issuance of bonds. >> basically, the voters approved but it was years later
before you actually sold your first bond? >> but we did issue commercial paper. >> will be coming back to ask you of whether or not you need or have a commercial paper program we will hear that on the record. thank you dan. >> moving on to but when you put all of the 87 different projects together, what does the spending look like? we have a carafe of the spending and the percentage of the total with the cost. if you look at the entire program it would start like you mentioned, in 2001 and it will go to 2019 which is a schedule completion for the purposes of the ability
>> i cannot believe i live long enough to see it. in terms of narrating the spending curb the locals got a much earlier's we started construction in 2007 and it was largely completed by 2011. we have about, one project that's not finished the regional program for most of the dollars are experience a major construction in 2010-2012. we had 14 large projects in each year that. we had average monthly spending that went from 2012 when we spent $117 million. currently, were at the end of the program and spending is about $16 million a month. let me back up, let me go to the next light.
that's talk about how we coordinate, we talked about project delivery and how the group is responsible for that and how we have program directors and program controls group that provide independent input and oversight. at the same time, we work with financing and were very closely with the program delivery group to ensure that we have funding required to build a program. the way we approach funding is we use as i mentioned we use short term and long term indebtedness. we commercial paper to provide for budget releases, control certification and in some project cost. and then we take it out with long-term tech for refinancing the commercial paper and then we would issue bonds and use proceeds. since 2006, with issued 11 you money revenue bonds for a total
of $4.2 billion. and here, we pulled the project delivery with the project funding together. and as you can see, and read you see the bars related to project spending and these are the dollars that were spent on the projects and you can see sort of the early phase in planning and design was the activity lower level of spending. you can see an 072-2011 you had most of the local projects go into construction and in 2010-2012 really was a big level of spending and a whole sales system. the regional system. you can look at the blue bars and look at the issuances. we had an issuance in 2006 which
took out the commercial paper that we used for planning and development. from 2010-2012 we issued bonds on a quarterly basis. we had a very intense financing activity. >> relative to the question that i asked earlier, to project manager accountability. you have talked about the independent arm that you have, at the end of the day when certain projects were slipping or project managers were not performing at it you hold them and those projects accountable? >> the responsible party for project and protract --manager is the assistant general manager of the infrastructure. >> we should hear from her, i guess? >> to answer that question we
work with a lot with our consultants because on a program decide --can't you state your name is mark >> kathy how. for the program the size we actually have a lot of consultants helping us as well. we had project consultants as well. both on the design site and the construction site. when our program controls group does the reviews with the project managers and we find that we are behind or that were over budget, we look at the program and say what we need to make adjustments in the program to stay on track. >> that has been successful? >> yes. we've had a lot of lessons learned.
>> thank you. >> this really concludes my presentation. key points are program delivery. and the delivery driver finances activities. we try to finance our program to mitigate the impact. >> thank you and i appreciate your insight. now, will have presentation from john thomas. >> good morning. john thomas acting deputy director for public works. i apologize, i don't have a presentation but i was her to talk of how we manage some of the bond programs in the past and certainly available to answer questions.
i would just like to say that of all the bonds at about managed and the department has manage there is quite a variance in the types of work in the way of which you implement those programs. those are very specific sort of single projects for other design or construction is a bit more timely and controlled for program such as a 2011 and safety bond for the 2014 bond there much more broad in their scope. each one has multiple programs and within the programs they have multiple projects. the way in which we've implemented those berries but the similarity amongst all of them is that there are lessons
learned going back to 2000 --1999. additional planning needed to cut --occur. when he was a public works was instrumental with working with the board and be able to provide that fun or those funds so the planning could happen and it was one of the initial recipients of the money which was pre-bond sales. now with this fun we know that there was utilize and we also used local funds both general funds and i guess x funds to the design of projects so that we had shovel ready projects ago when that first issuances made. approved by the voters funds
were in place by april 2012 and most of those funds at least on the paving side were transition into construction budget so we encumbered funds almost immediately the major difference is the paving projects don't have an outreach process. there isn't or wasn't a risk of delay on that side. that first issuance of that program was the same amount around $72 million. 5 million of it was set aside for the street job. we had very general guidance so we established a process evaluated the projects and have to go into that planning and environmental process that was discussed in direct
presentation. that took some time to get those projects going but the other project that we had the other four elements so we had we had a sidewalk program we were able to move forward on those because there wasn't a clearance if you will or a public input that we were looking for at that time. those move for cry roughly. the first sale as i said, the funds were enhanced by april april 2012. we were ready for a second sale so in june 2013, received her second sale for an additional $125 million. bring in our total to $200 million in the first two years. but again, that was largely because we had a lot of projects that didn't require much public outreach.
the other item to keep in mind is that we also began implementing a process more coordination so both the agencies were courted and combined. we put projects up quickly and the delivery of the project is slower because we had a more complex project than what we normally would've done in the past. one that occurred, you then have 1000 feet of sewer to implement in addition to the paving and maybe 1500 feet of water. that takes additional time. while we were quick on the front and the construction was longer. instead of six months to take 18 months. those are kind of the major items that i wanted to highlight for you. >> as a result of that where the
projects more expensive? >> obviously, from my perspective, we coordinate these projects that we maximize the use of the funds by bringing in this work and complaining them into one larger project. there were costly on a given road and street but the cost per blocker square foot did not increase i think what we've seen as all of our contractors are local contractors are more more busy and have kind of reached in many cases the maximum that they can handle we are starting to see prices go up. >> thank you. i have a few questions. of the 200 million that has gone out what percentage is not complete?
>> i'm sorry, we have also sold the third bonsall the 240 million is now in her hands. i do not have the exact number in hand, my recollection is between expanded and encumbered order somewhere over 215 million i think there's only 20 million unexpended. most that money is what i call construction management tremendous support services. where we provide the funds to do that and support the project. and also for traffic and that stuff. that's where the funds is and we have also some other project that took a longer. of time to get through planning and approvals.
>> there has been some time since we first talked about the bond approval in 2011. suck criteria that used to determine --for this bond funny? >> from the paving site? >> yes. >> you have probably heard various people from public or to speak about the pci payment condition. all of the counties utilize the same process for measuring and evaluating this. it's then yearly so our condition at the time was around 64 which was substantially below what our target was in with the bond sale we had around 70 pci of 70 x 2021. that was our goal. as of december 2016 we have gone up five points on a yearly basis. the board has approved an equal
amount of funding to match the bonds in the two years since we have committed all the bond funds. that is also help us improve the condition of the streets. >> and our office to get the report from the streets that were paved in our district the last year. i know this a little-- but just curious is it all in the works? >> i don't know but i can look into that and get back with you. >> that would be great. president? >> thank you mr. thomas. next presentation will be from brian. capital planning. he's not here? >> good morning everyone heather green.
i'm here on behalf of brian strong. i passed out a presentation. >> thank you. thank you for your time and for having me. i understand my role is to give a little background on the capital planning process and how cpc helps and shapes up bond program for the city and provides oversight once it's approved. on side one, you have an overview over capital planning. committee and planning. we make recommendations to the
board and the mayor including items related to long-term debt. in practice what this means, we have bond proposal and projects as are programs are coming together once they're approved the capital planning committee does provide some oversight and we also have the capital planning funds this to be inverse upon approval of the bond. this helps to become shovel ready so that we can make use of the dollars once issued. we also have annual bond programs from various departments. they're expected to come before us and give us an update we also put together a report and is
presented as a discussion item and planted a total planning committee it has a former role of oversight of bond spending and there funded with a percentage of the bond spending and controller offices here they can speak more in detail about that. we also have a couple of slides of the role with regard to the development of the measures but it sounds like were more focus on accountability and oversight here we help define them and once the bond program is in the ballot there is another piece of education plan. >> all of this is good i think
we all very much appreciate this process. i think this is about, it we did all this capital planning and we know the needs and we know where the projects are and all of this has been done before we go to the voters and say we have a package and we know why we need the money we have a good argument should vote for this and then we can provide the product in a timely fashion, i think that's what the issue is. >> yes. our office and i personally like her director said we want to see these projects delivered we want to see san francisco's project stronger i think the question of what is timely is an important one. the percentage against the full package of the bond is a very small number. but when we consider spending against the first issuance which
is a 67 million and that we consider there is a third spent against the first issuance and that's not unusual when we go or look at past bond programs. usually we look at a three-year spend and so given that the ramp of time and the lessons learned making sure that we are meeting the needs of the projects that we deliver i think that we have a clear set of eight programs and spend it with each of those that were optimistic about that. any further questions? take you. >> thank you my screen. okay and our final presentation is our controller. >> mme. president i would like to hear
and i believe we have staff from the cta. understanding the financial relationship between the authority and the use of the bond money now understand you cannot have a commercial paper program which our controller is about to explain to us. i think it be worth hearing from them as well. >> okay. >> good afternoon. >> it's still morning then. >> good morning. i will be very brief. a couple of comments and i'll be here to answer. generally speaking the role that our office plays an obligation bond are really too full. number one we are responsible for sizing and issuing the city bond so we go through a process after the bonds are authorized
by the voters to determine at what pace we will sell bonds. we do payroll and helping departments size what they think their schedules will look like and then monitor the compliance within time. we want to do is sell these bonds. over time want to sell these general obligation bonds they become part of the tax roll we do payroll and monitor and spending against those plans. secondly we play and accountability role we do a set of different reports to the mayor and the board other stakeholders regarding how general obligation bonds are doing related to their adopted schedule and to their plans and will be the focus of that report what you been doing for several years now it's a yearly report
and that is to provide a high-level view of whether voters are getting what they promise as it relates to scope and budget. one of the things i would suggest is that we complete that report in the end of june and if you like us to come back to the committee and reported back regarding the spine and all the bonds and how the city's doing we would be happy to do that. >> what is your findings relative to this bond? >> last year, last june were your earlier so we note that it's very early in the program we did note that the rate was lower than expected on the bond to the first year and we did note that some schedule delays were likely coming due to the complications you talk to about today. among them being public process challenges were there optimistic and other projects that were giving in a coordination delays
were likely. so, one of the issues that you're talking about were flagged. obviously we know a lot more now, your later of how the program is doing. one smaller point. commercial paper is a very invaluable tool to avoid overselling bonds. you kinda use a paper to draw what you need and you only issue long-term step once you really spent and pay down the commercial paper that you've drawn. unfortunately under law that is not allowing, that's not a tool we can use. so we can use commercial paper and we do for the mta revenue bond program. it is supported by commercial paper but we can use it for general obligation bonds. >> that's a good question.
i don't know the history of where that comes from. i just know that it's prohibited use. >> i have just a specific question because i know that you understand how this stuff works because you been doing it for a long time. is this unusual in comparison to other bonds and how we do things and done things as it relates to bonds in general with the city? this seems out of the ordinary, but you are probably no better. we have been asked by the general bond oversight committee to do a specific review related to spending across recent series of bonds.
and how the rate compares. would be happy to provide that with the board what we have it. any big picture, i think and we kind of had some of these highlights. but the city is doing much better with these program deliveries across ten years or so. we're delivering scope that has been promised to the voters. we are living within budget the programs are established to deliver that scope in the last ten years that wasn't true the ten years before but now it is. it is true that what they struggle with most often is schedule. the schedule is probably, they're not pervasive but this is not the only program that affects promises that have been made. i will say that i think that the delays in the early part of this program are more significant that we seen on other bone cells.
and we can get you more specific information as we have it. >> thank you. i appreciate it. >> all right. see no other questions and no other presentations we will open this up to public comment. we have two speaker cards. diane anderson and eileen-- please come forward. >> hi i am diana and i am speaking as a business owner and resident. i would like to thank you for not rushing to spend the money because i think we need to rethink our needs. right now it seems like were living in a third world country with a condition of our streets. the cities amass, and were losing what makes us unique. we can't solve problems by throwing money at it.
though the money is approved but we did not get to prove the manner in which it is spent. the last 5 or 6 year one third of all of our traffic lanes have been eliminated. either from making muniz bus only lanes or bicycle lanes. our streets are a mess, they're more crowded there is more construction there is less parking. what parking there is, is more expensive. on the bus service, there's less bus service. businesses are leaving. there is no business this on post street. they can afford to be there. they are just out of business. small businesses cannot survive chain stores are weathering things longer but will leave. note most muni usages during rush hour that means two hours in the morning and two hours in the evening.
the rest of the day buses have very different usage. they are mostly empty. we have bus uses only in two hours but you can use a bus lanes any other time of the day. we have huge buses that are expensive to run. we should think about having needs or the chariot buses we can use smaller buses and neighborhoods will would be last toxic on our streets and neighborhood. thank you. thank you. we have to give everyone the same time, i apologize. i so sorry. thank you so much. you can actually hand in what you've written to the board and we will read all of it. i really sorry.
if you can give your comments to be a paper we will take it and read it. thank you very much. okay. i will be using the overhead. is it on? i would like to thank the committee for conducting this hearing and urge the committee to look at the 2014 bond in a broader context for i attending the meeting of the bond oversight committee and the following are some of the powerpoint slides. the slideshows prop checks which contract activities, however, there are so hanging balances left on these one is the 24th and castro.
and the final one is the green central roof. the following show projects with serious 2000 funds remaining this is also first is a blue light and the next one is the columbus. the more importantly is the-- they show that serious 2013 are remaining but funds are being spent from the 2014 bonds. the creek and the convenience. the odd one is the procurement or its zero a0 and remaining wh doesn't make a lot of sense. this is part of the tenure capital plan.
table e 35 indicates not only 2014 bonds but also intended to thousand 24 a new revenue measure for the november 2018 ballots and a number of revenue bonds issuances. >> thank you very much. next speaker? i good morning almost good afternoon. i brian larkin. i'm the chair of the citizens obligation bond oversight committee. my cochair brenda is also here. she'll get two minutes as well. together where the liaisons between the 2014 transportation rd. bono we want you to know that we have been meeting regularly with the staff on the progress of this bond. we met on 19 january as we do
and we met again on the 17th subsequent to supervisor bree. and then once again, 22 march the day prior to our regular overall general obligation meeting. i'm going to repeat a couple of things or emphasis a couple of things that you are ready hold from the staff. on a regular meeting on the 19th which i have the notes, we found that there were delays in the improvements because of subcontractor having had a gas line cause a two-month delay and they got into the holiday on construction. this is a difficult to you have to conform to the requirements and the code. that's one of things that they cannot have foreseen but will happen just the same. number five fulton had to be rebuilt twice because the bidders did not reach the requirements.
i'm speaking as a local business enterprise. anna saying something you may do is consider reviewing what the requirements are for local businesses enterprise and participation because i'm sure this is not the first times of mike this is happen. the other reason i'm here is because our reason and is that our media to be televised i want to get little practice speaking for the camera. thanks a lot. i thank you. >> good morning. i brenda. i the co-vice chair and we are both happen to be assigned we are members to oversee the bond i will be very brief my collie's focus on the specifics both of
us we meet with the staff we do go over each of the projects so we feel that we have a hold and an understanding of what's holding it up and questioning the staff to make sure that they're doing everything in their power to accelerate that process i also want to encourage you to think of these bonds much like capital spending this first one and we have spent a third of it and by other comparisons that seems low. i can appreciate the supervisor being concerned when you look at it statistic of the bond and i think for this bond i would encourage you supervisors as you review these results to look at the specific charge at hand.
i think my colleague and i that's the only way we can focus on what is at hand to make sure that the delays are being pushed forward and not to look at the them being tardy for funds that haven't been drawn. thank you. >> thank you. next speaker please are there any other members of the public that would like to provide public comment? public comment is not close. >> hi i am the deputy director. i'll make a few quick remarks as we are about to issue our first or asked for permission from the transportation board. to issue our first sales tax revenue bond we have function with what was in a commercial paper program in 2005. it was rolled over into a revolver, short-term loan structure in 2015. we been able to function and
which short-term financing to y today. we are looking at expenditures over the next four years that have been anticipated primarily for the local match to the federal funds to replace the entire fleet. also, for the radio replacement and central control projects light rail vehicles and the procurement. those are the major cash drivers are were looking at funding over the next two years. we've anticipating these projects there under construction the contract are ready to projects on the street the radios are going into the vehicles. so were in a slightly different situation than with the general obligation bond. these projects that would be issuing debt for our under
construction are heading to construction within next two years and were confidence at the bunch will be expended at. >> thank you. >> here's my question. i assume the answer is yes but to what degree does the county transportation authority and the money people coordinate the issuance of money? at a high level do you have a conversation about maybe they should be issuing more debt and you should be issuing less debt or can you in essence, serve general obligation bonding program as a virtual commercial paper program given the amount of cash that you have on hand? do you guys have those kind of conversation? >> yes, we work closely with them. our cash flow is really in their cash flow.
as far as when they will be coming in for reimbursement. we are focus on when you get a request that there's a series of things that need to happen. the buses need to be procured. we would be bonding for the funding commitments for the proper case funds. so there's a whole host of other services. am i understand that but what i'm saying is something different. how about ed spencer's bond money and doesn't ask you for prop k money? the program has been anticipated in the sense that our funds are either finding things that have a read acquired local match so it has to be on them for like the federal funds. it's like $200 million because of buses it's a huge program.
for the radio replacement project we allocated the funds many years ago so the anticipation for the capital program has been that they won't fund $60 million worth of the radio replacement project. >> i may be going the wrong road on that even sure that you can use that bond money to actually finance the radio system. i don't know if you can use it to finance a rolling stock. >> that is correct. the state law doesn't allow the use of general obligation bonds revenues for rolling stock it's only for a fixed asset. the biggest chunk of money that toby seeking is to vehicle procurements. the other single biggest part is the radio project which will be a substantial completion this
summer so the funds are needed more immediately. i don't believe they are category within the geo bond authorizing ordinances that the writer project fits into well. but to the bigger picture and this is a point i was trying to make. that's the kind of work that they're doing their trying to figure out what's the best source to match to the best use and they're working very closely with anna and her team to figure out where the sales revenue fits in with the larger review of our revenues which includes the geo bond the federal bonds funds we did create a commercial paper program which we cannot use for the bond projects but we have available for use against of our revenue bonds for example. we are trying to optimize with all of our different partners
and sources and what's the best match for the source and the use. >> now that you explained, the two largest lease are not eligible for the geo bond funds there are other projects that i assume would be like for instance a couple months ago we authorize a check and change for mme the city and improvements. i would think that you can use g opening for those? >> yes and some of the future issuance of be for that big city process. i mentioned that getting closer. >> i'm just trying to try to find out if you can ask for additional money. >> si also mentioned and that would be to come back to the board with a supplemental appropriation because the language that authorized the spending of the first issuance was very specific.
we would need to come back to you if you wanted to move say from the transit category to the facility category that something that we may be coming to you with along with the second issuance so we can move the money to the projects that are moving faster. >> i don't want this to ever to happen like at fire which can remind everybody about but come a they had a 1984 bond where they had issued everything and it hadn't, portions of it and been spent for you not to 20 years. >> that will not happy with these dollars. half it --that will not happen with these dollars. >> thank you. you have any questions? i appreciate the time and consideration of the presenters here today. thank you for your feedback. this has not been resolved and we would like to see the
improvements of course sooner rather than later. i'm looking forward to a report from her controller regarding the comparison specifically on how we have been spending bond money and how that all works. a chart as you had express would be great just to get a comparison on those particular issues and also i think the one thing that i'm trying to understand is what can we do better? what can we do and i know the supervisor made some suggestions basically using exactly what you plan to do. money that is available, projects are ready now shifting over and the funding from the bond in order to address those projects and move them forward. sooner rather than later. but what can be done, what needs to be done in order to get this stuff going i think part of it,
there's like a lot of moving parts. a lot of departments and things going on with the city but at the end of the day we get the complaints we get the complaints when they are late or the haight street project improvements and roads and we deal with the lawsuits that happen as a result of just having bad contractors and all these other things. we are dealing with that and were being held accountable and those things come to us, what i want to see happen on the front and is that this is handled better so that these things get done faster and i know you're saying the same thing but the results of what we have happening are not necessarily give me giving us hope that they will. i guess besides shifting funding to other projects what else can
be done from the department to move forward sooner? >> there are a number of things that were doing and i concur with your statement. we are changing and improving the way that we manage the project and have accountability for the projects were changing the way we budget and schedule and act the committee outreach process to have the right amount of time and right approach doesn't get things bogged down that certain a place where board of supervisors members can be helpful to us in the outreach process so i would very much appreciate your remarks of front and will continue to work with your office on helping us cut through and make sure were addressing the legitimate needs but don't a small number of voices delay these projects. the coordination i think we fix
the coronation issues among the different agencies and i will continue with the regular meetings and ways to mutually track the applications and commitments. we change the way the mini operation is providing support to the projects to reduce delays and make sure we can get the resources on the ground. in terms of the contracting process is for a little bit less so we can do as long as there this much work happening in the city. the number of bidders is more scarce and it leads to more potential rebids. where continued into work through the construction and task force and figure out ways that we can streamline and make that process easier and it can be that --ben and i were talking about the new system and project any more things electronic and online.
there are a number of things that we are continuing to improve upon, i would not stand here and say don't worry, were all good and everything is running perfectly now. there is continue work to be done in the city not just in our department and i just with this bond but, we are taking numerous steps along those dimensions to continue moving these projects forward. >> the last, question i have. you talked about this i guess in your presentation so were talking about $500 million bond you have 69 million in your position and how much of that is been spent? a lot more than i think you mentioned in the 12 million?
>> at this point as of february 20 percent of that first issuance was spent. that was around 12 million. there's another 18 million that has been encumbered will have more current data on that. we are planning to come this year for a second issuance of about 118 million and at that time as i mentioned we may seek to change the appropriation authority that you gave us so that we can wrap up the spending. i think you saw the presentation that there was a ramp up. and acceleration. we accept the same with despond. >> thank you. thank you college. the supervisor any other comments? >> no, i think having meetings like this is good. just let them know that were watching and were concerned and at the high level when you see
$500 million in only 12 is been spent it's appropriate to hold a hearing like this. we should continue and monitor. >> i will say, actually we can continue to the call of the chair. i will like to make sure that we give you some time to go to the process in which you bring the searing back to the committee sometime in the fall. what remains more progress just to stay on top of things. i would be happy to. >> also i think we should, i at least as chair of that body i will be looking at projects that can qualify under the geo bond when there are things that you think will qualify we should stress that as well. >> okay. thank you so much.
we do have a motion to continue to the call of the chair. i believe we can do that with any opposition. >> i just finished in every request that we move item 56 and 7. without committing into closed session today. i want to see if there's a motion? >> yes. i would be subject to, public comment happy to move items 5-6 and seven to the full board with recommendations. >> great. we have a motion and before we take that motion, i'm opening up these three items for public comment? >> what you like to call the items? >> yes. call item 5, 6, and seven. 7.
item number seven is a resolution approving the settlement of the claims filed by international. >> thank you. i'm opening up for public comment on items 5, 6 and sev7.. public comment is not close. we have a motion to move forward these items with a recommendation to the full board and we can do that without opposition. mdm. clerk please call item number four. >> yes, it's a hearing on the san francisco sewer system
program. including project taking place at the south east treatment plant. >> thank you. the sponsor is here to provide some clarity. i will hand over the hearing to you. >> thank you. good afternoon, thank you for allowing me a few minutes to talk about this important item, i don't four. the sewer system improvement plan is eight $20 billion citywide program to upgrade our aging sewer infrastructure. phase one program will spend approximately $2.9 billion to improve our city's water system another 2.9 billion that 2 billion of that will be spent at the southeast treatment plant which is located in the southeast corner of san francisco. the south treatment plan treats
80% of the city's wastewater flow and a little bit under 60 millions per day. as a lie to say, there who is our business. i think that's her slogan. all right. much of the work they will be considered a number of items related to the rebuild of the treatment plan this year and 2017. the reason why i call for this hearing it's pretty straightforward. it is them to provide a very high level and thoughtful overview of the program the focus, the project is taking place in the southeastern plant. i also believe that the committee is generally familiar with the ss ip, but we wanted to provide an opportunity in case there's any questions.
this is an opportunity to refresh ourselves and be able to dive more in tap from a discussion perspective on this item. and knowing that it will be coming to the port of supervisors in the near future. i would like to bring up karen who is really helped us with this project. it's nice to see you karen she is a director and she'll be making the presentation today. thank you. >> thank you supervisor. good afternoon. i the capital program director and today i'm here to provide you with a special update on the san francisco commission improvement program and the progress that they've been making taking place on or around the southeast plant. i'm gonna give you a preview of those items will be coming to the board. first, i would like to show you,
we have a combined sewer system that services san francisco. we treat and collect storm water runoff as well. the city is divided into two natural drainage basins. the westside basin and the other one, usually see the one in red on the map. as for the broken down into eight watersheds. they flow by gravity we collected down in our sewers and tunnels and it ends up in the large transport storage boxes which are the stark rectangle. we had three treatment plans to the west side of the city we have the oceanside plant that's a baby. built in 1993 it's adjacent to the san francisco zoo. up in northeast leslie, will be talking about the largest plant
the southeast of the city with the treatment plan it's been operating since 195224-7 and has a bulk of the projects. are challenges for the system combined with discharges which goes through the environmental area and reliability we have not had the wastewater system upgraded localized flooding, rising sea level and climate change are effective our system as well. but water can get into those boxes. the program incorporates grade, were going to be building some big gray concrete things like pump station and other things to reinforcer system. were going employ grain to manage store water and address runoffs. and the real purpose is to keep our bay and ocean and clean.
the levels of service that were established with the commission are shown on the slide and really the work at southeast plant is going to hit every single one of these but specifically i want to highlight the first one that has to do with compliance and reliability. permit compliance and making sure that we can be able to collect and treat wastewater through a variety of testings. one of our underlining criteria as i will be back online within 72 hours to treat primary. we have not had the plant upgraded in addition to everything being very old this makes it a double whammy. if we were hit by an earthquake and had our infrastructure fader we could not meet permit. we have a lot of urgency with getting this work done. the next slide shows the size of the program. the three phases are shown here represent $6.9 billion. there's a division of the treatment plan phase one totals
$2.1 billion $2 billion worth of that investment is at south wiese plant. we also have work shown before the orange bar which includes tunnels, large sewers. currently, we have 70 projects which have been started as part of phase one. $2.9 billion this represents one of our graphical depictions i report to our commission on equality bases this is directly from the last quarterly report i made to them. current expenditures are $366 million and we are at 16% complete. all of this information is extracted from our project control system. design is the largest piece of the pie right now because of our two biggest projects.
we do have 11 projects in construction and ten that have been closed out. you look at the city as a whole work and have projects throughout the city this gives you an idea of the location of the projects as well as the locations of the treatment plans. it we can do quickly a snapshot of the system work these are the jobs are taking place all over the city the green boxes represent the infrastructure product checks in the blue are also projects that can be a combination of gray and green. they are a long history of project for the south east plans we been working on these for a long time and i'm looking to go through the entire history but i wanted to highlight you that we did work with a task force that was made up of nine members and they worked with us for several years on that project their
specific charge was to help us with the relocation which are currently located across the street from residences that issued a summary report and we move forward with the relocation plan for this. and that's part of her capital program. we had numerous public meetings with the commission and we validated the program and and started it out in 2012 with phase i being authorized with a $2.9 billion. we designed it and now we have appoint a process of doing her last award for construction contract. we are using construction manager, general contractors and delivery. in the future as the supervisor said we will start construction this year when the next year that the city would start construction. a lot of construction work will help --start. this next slide is an aerial of
the plant just to give you an idea. it's a very compact site that is full and there is very little room to move just north of the plant there's a race railway to the right to the east is evidence to the south aborting the plant as phelps and to the west of the property is oakdale. within this aerial a lot of aging infrastructure were going have to keep this plant running while we are surgically doing the construction. it's a little different than we said before. this is how we will be reconstructing the plant. it shown in the blue are the facilities. there's energy and recovery association. you'll see that we selected area that's the furthest away from the residence as possible for that facility.
you will see to the right and green is a headworks facility. that is right to work evans and is the main corridor. next, the timeline we do have all of these projects which are tracked and the reported. dark blue represents a design phase and green represents construction. greatest closeout. specifically i would like to start with the this project into a deeper dive. t east plant is for 80% of the wastewater is treated. the headworks are shown in green it's where all of the flows enter the plant from the north and the south. it's a pretreatment classes and remove solid things like tires and brakes and sent. and right now that great in sand is conveyed through her entire treatment process and it affects us in every process. this is a very odorless part of the plan.
locate it in a public area. the new project objective are to remove the grit from the process water and this has to occur in a wide variety of hydraulic conditions during dry weather we have low flows during wet weather enormous. the system is very old and it does not need-to meet our levels of service. this is a shot of what the future headworks will look like. working with the department of public works and we're working with specific design committee. it's beautiful. the site represent the concept that has received phase i approval from civic design and will be back to them in june for final approval. we have selected the artist will be working on the piece they'll
be shown in the corner. kind of a gray and white border. we'll have an art feature that be seen by many, many folks. i would like to get our flagship project. at 1.2 $.7 million it's a largest project to be taken on. this is again, the outline of that project. i would like to say that there's great urgency from our commission that this project stay on schedule and keep moving as quickly as possible. we have members of the public that come into this commission and they speak specifically about this project. it is set back by the railroad tracks. we located them there because her furthest from the revit residence. on the left will be the energy recovery facility. the objective of the project are many. a lot of have to do with aging infrastructure, compliance
making sure that we have use swords treated to the highest level possible. some of the real wins for the project are shown on the slide. reducing the number of digesters from 1 to 5. increase the amount of renewable energy will be produced. we will increase the level of treatment to what we call class a because it will give us many more options for beneficial views. of course the control be taking the state-of-the-art control to be able to make sure we don't have odors on the fence line. we look at this rendering we have been working with the arts commission on this facility so that we have something that will bring the industry committee and
the environment together to have an integrated urban campus that the committee can be proud of. it also has an internal education plaza and a pedestrian access location. and here this gives an idea if you're strolling around the plant going from evans to phelps to gerald the types of use that you will see in the future and it was very important to us to take advantage of this opportunity so much work occurring with the plant to think of the outside in. how is the community give you the plant, will their experience p. we want this to be a place of destination and that's what we took advantage of this opportunity. along with all those things, they look at being a good neighbor more broadly for all of our neighbors.
we have several focus areas and they include workforce development, economic development and education. we have local hire men requirements and we have committee benefits requirements that are embedded in all of our contracts. in the summer, we pull in use will have 21 training that come and work with us side-by-side. they begin in high school years and we tracked them through college years. we utilize our contractors assisting center for training and for opportunities for small contractors and large ones to work together so they can get the best opportunities. we are working with our workforce program to make sure that there's real opportunities for small businesses and job opportunity for people from san francisco particularly from the south east section where the work is taking place.
the us are our numbers are currently looking. san francisco britons have worked 36% of all the hours. that he equates a $5.5 million in wages and benefits. the highest districts are ten and district nine mission. they have worked the most hours. we are even doing better with her entry-level opportunities and those will provide pathways to careers in building and construction trade. so far we have 70% of the hours worked compared to 50% requirements and that's 58 apprentices working over 26,000 hours. again, those have been from the sectors that we talked about. a lot of the interest is on jobs and opportunities and how to get involved so they have been issuing a buy annual job and contract report specific to this program. were doing that so we can highlight small physicist
participation, workers and their path to participating and this is a snapshot that holds us accountable but also enhance transparency to the committee. committee outrage is also a huge factor in vital to the success of this program and we use many, many methods to engage the community and this is a portion we've had over 2000 people attend the city tours walking through the plant connecting the process and the hard work that we do with the clean bay and ocean. we get them on bikes we get them walking and would take a mongering infrastructure tours. at since april 2013 we've held over 270 presentations we've also been using social media something called metro if a
person cannot attend a public meeting or workshop we have online tools that basically provide them that opportunity to weigh encompass give us input and we can take that to factor in the project. it we have three people attending the meeting we've had over 100 going to the metro quest. those have been highlighted for our green infrastructure work. we found that to be very helpful we also have surveys we can track down specific folks that were not getting enough participation from a certain section of the neighborhood. you'll be seen us a lot. we have a lot of exciting things and there's a lot of opportunity of when will be coming to the board of supervisors. we will be back to you for the contract modification and headworks contract management award. and then over the summer and fall will be back for numerous construction contracts and approximately a year from now we will be back for the bottle solid environmental review which will be the predecessors to our beginning construction of the new facility in 2018.
i want to thank you so much for giving us time on the calendar. i know how busy you are and you have any questions i'd be more than happy to answer if i miss anything. i know i don't think you missed anything just wanted to compliment you on the thoroughness. i don't know if the supervisor, no, no questions we have no questions. let's go to public comment. >> at this time will open up for public comment. seen no public comment we are close. supervisors mark i thank you. all right. since no further comments so, as
a sponsor of this item would you like-- >> thank you for your mind appeared before we take a motion to file the item we must first take a motion to excuse president the supervisor is now here in her place. let's take that motion. i am for the motion. >> thank you. we can do that without opposition. i would like to thank supervisor for bringing this to the committee and this is a huge project. the will be many, many things that come before --before the board. i remember when we were embarking on this program and getting onto two decades ago and there were many twists and turns in that road and i'm sure though be many more twins and turned in that road and many things that will bring this back time and again so thank you for that early overview and look forward to a very expensive success.
sustainable future . >> san francisco streets and puffs make up 25 percent of cities e city's land area more than all the parks combined they're far two wide and have large flight area the pavement to parks is to test the variants by ininexpensive changing did new open spaces the city made up of streets in you think about the potential of having this space for a purpose it is demands for the best for bikes and families to gather. >> through a collaborative
effort with the department we the public works and the municipal transportation agency pavement to parks is bringing initiative ideas to our streets. >> so the face of the street is the core of our program we have in the public right-of-way meaning streets that can have areas perpetrated for something else. >> i'm here with john francis pavement to parks manager and this parklet on van ness street first of all, what is a parklet and part of pavement to parks program basically an expense of the walk in a public realm for people to hang anti nor a urban acceptable space for people to use. >> parklets sponsors have to apply to be considered for the program but they come to us you know saying we want to do this and create a new space on our street
it is a community driven program. >> the program goes beyond just parklets vacant lots and other spaces are converted we're here at playland on 43 this is place is cool with loots things to do and plenty of space to play so we came up with that idea to revitalizations this underutilized yard by going to the community and what they said want to see here we saw that everybody wants to see everything to we want this to be a space for everyone. >> yeah. >> we partnered with the pavement to parks program and so we had the contract for building 236 blot community garden
it start with a lot of jacuzzi hammers and bulldozer and now the point we're planting trees and flowers we have basketball courts there is so much to do here. >> there's a very full program that they simply joy that and meet the community and friends and about be about the lighter side of city people are more engaged not just the customers. >> with the help of community pavement to parks is reimagining the potential of our student streets if you want more information visit them as the pavement to parks or contact pavement to parks at sfgovtv.org